RISK MANAGEMENT ANALYSIS OF THE INVESTMENT MANAGEMENT MODEL FOR HAJJ FUNDS AT THE HAJJ FINANCIAL MANAGEMENT AGENCY (BPKH)

Abstract

This study aims to analyse the investment management models of Hajj funds at BPKH, the potential risk forms faced, and the risk management of Hajj fund investments performed by BPKH. The research method used is literature research. The results indicate that BPKH manages Hajj fund investments using two models: 1) investing in securities in Sharia capital market instruments including Sharia stocks, Sharia bonds or sukuk, and Sharia mutual funds, and 2) direct investments in various company sectors such as hospitality, aviation fuel, airlines, catering, bus transportation, and national banking to acquire money changers in Saudi Arabia, as well as certified gold investments and other investments. The potential risks of these two forms of Hajj fund investments include exchange rate risk, liquidity risk, default risk, and legal risk. Based on the analysis, it was found that the implementation of Hajj fund investment risk management by BPKH has applied economic principles, especially the principle of prudence.